It’s been almost two years since the housing market in London fell to a record low, and the city is starting to see the benefits of a renewed confidence in the market.
But now it seems there is a big change in sentiment in the property market.
According to data from Markit, the price of a new two-bedroom apartment in the capital rose 2.5% year-on-year in March, to a new record high of £2,874,700.
That’s up from £2.6 million a month ago.
This is partly down to the start of a surge in demand from tourists and the economy, but it’s also due to a slight reduction in supply due to the Brexit vote.
The rise in demand, and a drop in supply, is a sign that prices may be on the rise, which would help to offset the slowdown in supply caused by the Brexit effect.
The most expensive apartment in London, on a 2-bedroom, was on the high side of the market, but prices have fallen off a cliff in recent weeks.
A house in Hampstead, for example, cost just £1.25m in March but now costs £2 million.
This means that London has now seen an increase in price in the past month, to reach £2 billion, according to Markit.
That’s well above the £2 per square foot mark in London for the period that started in July.
But if you think about it, it makes sense.
London has seen a dramatic fall in the number of homes that are being built.
Between April and June, there were nearly 8.5 million new homes built, compared to 5.3 million in the same period last year.
The government has set a target of building 2 million new houses a year by 2023, but that will take a huge amount of time to achieve, according the Institute of Directors.
So while it’s great to see prices climbing, it’s a sign of things to come.